Alphabet price target lowered to $185 from $210 at Oppenheimer

Oppenheimer lowered the firm’s price target on Alphabet (GOOG) to $185 from $210 and keeps an Outperform rating on the shares. The firm says that while ramifications from Google Search labeled a monopoly are unknown, investors now discounting the loss of Apple (AAPL) exclusivity, likely capping price to earnings at 20-times. Google generates 31% of gross search revenue via Apple devices and pays 36% to Apple for exclusivity, resulting in 19% of net ad exposure. However, Google would only need to retain 65% of Apple search activity, assuming no TAC payment or 75% assuming TAC drops to 15%, Oppenheimer adds.